The Government has published a call for evidence on how work-based schemes are managed to help develop a set of minimum legislative standards to protect members.
With regard to the quality of defined contribution (DC) schemes, the Government is asking for evidence on the current state of pension scheme governance, default options, administration and record-keeping, and scale of schemes.
Pensions minister Steve Webb said: "When people choose to pay into a workplace pension few will have actively chosen the scheme they join.
"They trust the people managing their pension to be doing everything they can to ensure they receive a decent return when they retire.
"While we know standards in DC schemes have been improving, we want to make sure all pension providers have key quality standards in place to protect their members."
The Government is seeking views on how schemes manage members' pension pots, standards for high design and selection of default options and ways to ensure that people running pensions schemes have the skills and knowledge to be able to act in members' interests.
The National Association of Pension Funds (NAPF) head of policy and advocacy Helen Forrest said: "DC pensions are the future and if auto-enrolment is to succeed people need to be able to trust that they are of a good standard.
"We remain very worried that pot follows member will put savers at risk. We are pleased that the Government has recognised those issues and is considering minimum legal standards for DC pensions. This only goes some way to addressing the risks to consumers posed by pot follows member, but it is a step in the right direction."
The TUC also welcomes the Government's call for evidence.
Frances O'Grady added: "We also welcome the promise to consider the wider structure of the DC pensions marketplace once the Office of Fair Trading has reported.
"This could provide the opportunity for a major shake up to drive scale and good governance. Improving the quality of existing schemes is important but only one step towards a private pensions system that is better designed around members' interests."
First published 05.07.2013
monique_simpson@wilmington.co.uk
